Infosys Q1 Results Live Updates: Net Profit Rises 7% To Rs 6,368 Cr; Revenue Growth Outlook Raised To 3-4%

Infosys Q1 Results 2024:  In Q1 FY25, Infosys reported a 7.1% year-on-year increase in net profit to Rs 6,368 crore, surpassing expectations. The company’s consolidated revenue from operations for the April-June quarter also rose by 3.6% year-on-year to Rs 39,315 crore.

According to the stock exchange filing, on a quarter-on-quarter basis, Infosys saw a 20.1% decline in bottom line, primarily due to a tax refund boost in the previous quarter.

Infosys Results Live

Infosys has revised its revenue growth guidance for FY25 to a range of 3% to 4%. Analysts had anticipated the company to maintain its FY25 revenue growth guidance in constant currency (CC) terms at 1-3%.

Infosys Dividend 2024

Infosys has not announced a dividend with the Q1 results.

Infosys Attrition Rate

Q1 (FY25) saw a voluntary attrition rate of 12.7% per cent as opposed to Q4 (FY24) 12.6% per cent.

Infosys Results Today

Salil Parekh, CEO and MD, Infosys, said, “We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution. With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities.”

Jayesh Sanghrajka, CFO, Infosys, said, “Our relentless drive on cost optimization through Project Maximus, a comprehensive margin expansion program, is reflected in the all-around improvement in key operating metrics leading to 1.0% growth in operating margin in Q1. We had the highest ever FCF generation at $1.1 bn and ROE increased to 33.6% due to higher payouts to investors.”

Analyst Opinions and Market Reactions

Prakash Diwan, a Market Expert, said, “These numbers are far better than what all of us had anticipated, particularly the constant currency growth is stupendous in this environment, especially when you know that the likes of TCS and HCL Tech have been struggling. If you look at the change in the stock price in recent months, it’s kind of played a bit of catch up, but I think these numbers propel much more rerating.”

Analysts earlier predicted a rebound in sequential revenue growth of 2-3 percent in constant currency (CC), driven by the ramp-up of significant deals secured during FY24.

According to analysts, Infosys was likely to see a rebound in its sequential revenue growth to 2-3 per cent on constant currency (CC), on the back of a ramp-up in large deals won during FY24.

Nomura had predicted that Infosys would experience a 3.0% quarter-on-quarter growth in constant currency (cc), fueled by the ramp-up of large contracts, the removal of the one-time 100 basis points (bp) impact from the BFSI client contract restructuring, and robust seasonal patterns.

Regarding EBIT margins, Nomura had forecasted an 80 basis points quarter-on-quarter expansion, driven by the absence of the one-time 100 basis points impact from the BFSI client contract restructuring and the exclusion of visa costs for the quarter.

Q1 Results of IT Companies

Last week, IT giants Tata Consultancy Services (TCS) and HCL Tech announced their earnings for the June 2024 quarter, both surpassing expectations. This led to a rise in their share prices.

TCS, India’s largest IT services company, reported a 9% year-on-year increase in consolidated net profit, reaching Rs 12,040 crore for the first quarter of FY 2024-25, ending on June 30. The company’s revenue from operations during April-June 2024 rose by 5.4% year-on-year to Rs 62,613 crore. Analysts had anticipated a profit of Rs 11,999 crore and revenue of Rs 62,190 crore.

HCL Technologies recorded a substantial 20.45% year-on-year increase in net profit, amounting to Rs 4,257 crore for the first quarter of FY 2024-25. Its revenue from operations during April-June 2024 grew by 6.69%, reaching Rs 28,057 crore, compared to Rs 26,296 crore in the same period last year.